ADNOC LNG has signed up to a six-year supply agreement with Vitol for the sale of 1.8 million tons per annum (mtpa) of post-2022 LNG volumes and a two-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes.
Speaking at the Abu Dhabi International Petroleum Exhibition and Convention (ADIPEC), Fatema Al Nuaimi, CEO of ADNOC LNG, said: “We are pleased to partner with both Vitol and Total on these major deals as they will create reliable, long-term benefits for our company and shareholders. Through collaboration and by adopting a partnership approach, we are driving new growth opportunities for ADNOC and are maximizing the value of our nation’s resources.”
“These agreements demonstrate the success of our commercial strategy in unprecedented times and confirm the market’s growing confidence in demand for natural gas. LNG is a fuel that can support the transition to clean energy, especially in many Asian markets where switching to gas will result in significant environmental gains. As a customer-focused business, we will continue to meet the growing demand for LNG as a key fuel in both today’s energy mix and looking ahead to the future.”
LNG global demand is currently projected to grow by up to 5 per cent annually over the next 20 years. Much of this market confidence is due to LNG being produced from natural gas, the cleanest fossil fuel, which can contribute to better air quality and lower GHG emissions in the power sector. This makes LNG ideal for the transition to a low-carbon energy future, supporting a pragmatic mix of fuels that can help countries balance energy demand with their clean energy goals.
Pablo Galante Escobar, Vitol’s Head of LNG, said: “We are proud to conclude another significant milestone with ADNOC, an important partner across key business areas. For Vitol LNG, this most recent development strengthens our ability to ensure diverse and secure supply to our customers around the world.”
Thomas Maurisse, Total’s SVP LNG, added: “This new supply agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our long-standing relationship with ADNOC LNG.”
ADNOC LNG produces about 6 mtpa of LNG from its facilities on Das Island off the coast of Abu Dhabi and is one of the world’s most reliable producers of the supercooled, liquefied gas.
The company is owned by ADNOC (70%), with Mitsui & Co (15%), BP (10%), and Total (5%) comprising the remaining shareholders.